OODA Loop: Make Ironclad Decisions Like The Military
“If your only tool is a hammer then every problem looks like a nail.” - Abraham Maslow
THINKING TOOL
The OODA loop is a four-step decision-making framework. It was developed by military strategist John Boyd. The process helps individuals and organizations make effective decisions in rapidly changing environments by continuously cycling through four stages: observation, orientation, decision, and action. Many similar frameworks exist, and they mostly follow an action-learning cycle, where we develop a plan, act, reflect, learn, and repeat. This makes for effective information processing.
Effective information processing and decision-making is obviously crucial for success in any environment. Competitive environments especially. Decision-making in competitive spheres means helping ourselves succeed at our rival’s expense. This is where OODA loops shine. Boyd’s framework is pretty simple: when entering a competition, the user should observe their opponent and surrounding environment; following, they should orient themselves on how to overcome the adversary; having chosen an orientation, they can decide on a strategy and implementing that action to the best of their ability. Rinse and repeat.
The point is to run through OODA loops as fast, inconspicuously, and effectively as possible. Better than our opponents. This way we, over time, will overtake them. Information is the fuel, processing is the activity, and a system or user is the host of the OODA loop. It may appear humble and overly simple at first, but that is its strength: it distills the fundamentals of competitive strategy and presents it in a widely accessible format. Just don’t forget the loop part. The process is intended to be repeated again and again.
Step one is to observe the situation. What is immediately affecting you? What is affecting your opponent? What could affect both of you later on? Can you predict anything accurately? Making good decisions is half in the way you observe your situation. The second stage is orientation. To orient yourself is to recognize barriers. Connect yourself with reality and see the world as it really is. Decide. The previous two steps laid the groundwork to make an informed decision. Use your observation and orientation to select an option. Then act. There’s a difference between making decisions and enacting them. Once you make up your mind, move. Test it.
Real life implications of the OODA loop:
Startups: startups often iterate through the OODA loop to adjust rapidly to market feedback and refine their products and services;
Emergency: firefighters and paramedics can use OODA loops to assess situations, choose actions, and adapt as conditions shift;
Business: observe—monitor conditions, customer trends, and market shifts; orient—analyze data, identify opportunities, assess risks; decide—choose a pricing or product position strategy; act—implement the stratagem, monitor its effects, and iterate;
Personal: observe—reflect on your habits, behaviors, and goals; orient—consider how your experiences and values influence your behavior; decide—set specific goals and action plans; act—execute changes and adapt based on what happens;
Negotiation: observe—understand the other party’s position and underlying interests; orient—synthesize this information with your objectives; decide—choose a suitable proposal or counteroffer; act—present your response and see how the other party reacts.
How to apply the OODA loop as a thinking tool: (1) observe, gathering data from your environment, focusing on relevant changes, potential threats, and opportunities, clearly perceiving the present circumstances; (2) orient, analyzing and synthesizing the information you observed, incorporating your past experiences, cultural background, and professional expertise to make sense of the situation; (3) decide, choose a course of action based on the orientation and observation phases preceding, the goal being to make a swift decision, staying ahead of competitors and responding effectively to challenges; (4) act, executing your decision and monitoring outcomes, feeding into the next observation phase to continue the loop.
Thought-provoking insights. “Plans are nothing; planning is everything.” is Dwight D. Eisenhower’s saying highlighting the value of adaptability over rigid planning. “Speed is the essence of war.” underscores the importance of operating faster than your opponent, coming from the military strategist Sun Tzu. “You can’t solve problems with the same thinking that created them.” is attributed to Albert Einstein, encouraging refining your thinking, specifically in the orientation phase. By mastering the OODA loop, you can navigate uncertainty and seize unexpected opportunities. Try it. Get an edge. OODA.